CUMBRIA AND EAST ANGLIA
Netherlands
WU
Carbon credits
The case shows how the financial sector can create a carbon market for farmers and businesses through the ‘Rabo Carbon Bank’. The Dutch Rabobank supports farmers in developing sustainable business models (e.g. by providing financing solutions and agronomic advice). These business models aim to reduce carbon emissions by switching to regenerative farming practices. These practices include reducing the use of chemical fertilisers and pesticides, improving crop rotation, using cover crops and raising water levels. The carbon reduction achieved through these practices is verified and carbon credits are sold. The bank operates internationally. Three-year trials of the Rabo Carbon Bank are currently underway in the US and the Netherlands with dairy and arable farmers (Banken NL, 2022). The carbon credits generated will be sold to large companies such as Vattenfall. In the NOVASOIL project we will analyse factors relevant to the acceptance of the business model by Dutch farmers. A discrete choice experiment (DCE) will be used to determine the influence of contract characteristics (e.g. contract length, financial and agronomic support, prices offered and management requirements) and current farming practices. Collaboration with relevant stakeholders (Dutch farmers, Rabobank) will be sought to identify relevant attributes for the experiment.
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